The Trump administration has officially announced plans to impose country-specific tariffs using Section 232 of the Trade Expansion Act and Section 301 of the Trade Act, despite a Supreme Court ruling declaring reciprocal tariffs illegal. The administration has already launched investigations into China and Brazil under Section 301 and emphasized it will also examine overcapacity in Asian countries.
On May 22 (local time), U.S. Customs and Border Protection (CBP) announced it would halt collection of tariffs under the International Emergency Economic Powers Act (IEEPA) starting midnight, following the court ruling that found them illegal. However, CBP clarified this does not affect tariffs under Section 232 and Section 301, adding it would release additional guidance as needed.
Immediately after the Supreme Court ruling, the administration initiated investigations into Brazil and China under Section 301 of the Trade Act. Known as "Super 301," this provision allows unlimited tariff rates in response to unfair or discriminatory foreign trade practices and permits extensions. It served as the legal foundation for high tariffs on China during Trump's first term.
U.S. Trade Representative Jamieson Greer warned in a Fox News interview, "We will investigate several Asian countries with overcapacity." He added, "We are looking at foreign rice markets that are killing American rice farmers through unfair trade practices and massive subsidies." USTR stated on the day of the Supreme Court ruling that "these investigations are expected to cover most major trading partners." This suggests South Korea, which recorded approximately $56.4 billion in trade surplus with the U.S. last year according to the Commerce Department, could also face investigation under Section 301.
Section 301 is not the only tool. Treasury Secretary Scott Bessent emphasized in a CNN interview that the 15% "global tariff" for up to 150 days, imposed under Section 122 of the Trade Act immediately after the Supreme Court ruling, serves as "a kind of bridge." He signaled the U.S. would deploy all available measures, including Section 232 of the Trade Expansion Act currently used for product-specific tariffs on automobiles and other goods.
The administration also pressured countries including South Korea to honor investment agreements made under previous tariff arrangements. Greer said on CBS's "Face the Nation," "The agreements with South Korea, Japan, China, and the European Union remain valid." He emphasized, "The United States will honor the agreements, and we expect our partners to do the same." Despite the ruling against reciprocal tariffs, the administration is pressing countries to fulfill their commitments, including investments in the U.S. Bessent even mentioned "embargo" measures, with Reuters reporting, "The U.S. Navy could blockade U.S. ports to prevent imports."
On May 23, President Trump strongly criticized the Supreme Court ruling and suggested he might use licensing authority. He wrote on Truth Social, "The Supreme Court, in an absurd, foolish, and internationally divisive decision, has given me, as President of the United States, even more authority and power. I can do really 'terrible' things to countries that have exploited America for decades using licenses." Reuters noted, "Trump indicated willingness to use licensing but did not provide specific plans."
The administration made clear it would fight refund demands from domestic and foreign companies. Bessent said, "Refunds from this ruling are a matter for lower courts," adding, "Tariffs under Sections 232 and 301 have withstood more than 4,000 lawsuits since Trump's first term." This signals the administration will not back down even if new tariff measures face legal challenges.
The additional tariffs announced by the Trump administration are expected to cause losses comparable to reciprocal tariffs for many countries. According to the Financial Times, trade research organization Global Trade Alert (GTA) projects that under the U.S. 15% global tariff, American allies including South Korea, Japan, and European countries could face additional burdens while separate product tariffs on steel, aluminum, and automobiles remain in place. GTA estimates South Korea's average tariff rate could rise by 0.6 percentage points. The EU, which had agreed to a 15% tariff rate with the Trump administration, is projected to see its average rate increase by 0.8 percentage points. In contrast, Brazil and China, which faced pressure for high tariffs from the Trump administration, would see average tariff rates decline by 13.6 and 7.1 percentage points, respectively. Southeast Asian countries including Vietnam, Thailand, and Malaysia were also identified as nations that would see reduced average tariff burdens.